Still, the charts for utilities ETFs hold the clues regarding what’s next for these funds.
“Did Utilities create a Double top at the old 2007 highs last month? I am of the opinion we will only know the answer to this question if XLU falls to the bottom of its 5-year rising channel. If it does fall that far and breaks support, then the chance of a double top increase a good deal,” adds Kimble.
Utilities Select Sector SPDR
Chart Courtesy: Kimble Charting Solutions